You might have heard this term as part of company title of most emerging IT companies who have delivery centers in the USA, Philippines and India. LLC stands for Limited Liability Company, where incorporators were given the security or assurance that restrict their legal liabilities right into the company itself only. It stands across the benefits of a corporation and partnership business structure. As oppose to a partnership company where both sides/partner are legally responsible in the company. That is if worst case the partnership company lost its track and fail, legal liabilities are shared by both parties upto their personal assets and properties.
As part of the business plan, we will register our firm as an LLC in Delaware, USA. Wtf, why Delaware, USA?! Search “how to do business in Delaware” and you will see. But basically Delaware has the best offer in terms of asset protection and intellectual property rights. Delaware has very stable legal platform and very low cost registering and doing business.
In succeeding years, unless the Philippines has established good business law, taxation, procedures, and online knowledge-base, we can expect more LLC’s subsidiaries here. Btw, MyStartup LLC is not MyStartup Inc. in the Philippines, because we don’t have such business structure yet. Legislators wake up!!